Sensex Jumps 879 Points, Nifty Closes Above 22,500 as IT Stocks Lead Rally
Mumbai — Indian stock markets rebounded sharply on Friday, ending a two-session losing streak as strong buying in information technology stocks, broad-based gains across sectors and lower global oil prices lifted investor sentiment.
The benchmark BSE Sensex surged 879.09 points, or 1.23%, to close at 72,472.33, while the NSE Nifty 50 advanced 288.65 points, or 1.3%, to finish at 22,520.45.
The rally was supported by renewed buying in major stocks, with Apollo Hospitals Enterprise, ITC and Eicher Motors among the top gainers on the Nifty.
Declining global crude oil prices also helped improve market sentiment by easing concerns over inflation and corporate profitability.
Broader market indices participated in the recovery, with the Nifty MidCap index rising 1.56% and the Nifty SmallCap index gaining 0.54%.
Among sectoral indices, the Nifty IT index led the gains as investors returned to technology stocks amid optimism over corporate earnings and artificial intelligence-related business opportunities.
The Nifty Oil and Gas index, however, lagged behind other sectors and emerged as the session’s weakest-performing sectoral benchmark.
Market analysts said the rebound helped benchmark indices recover a substantial portion of their recent losses, supported by value buying and short covering following the previous market correction.
“Domestic equities staged a relief rally, supported by value buying and short covering after the recent sharp correction. IT stocks outperformed on the back of a strong start to the Q2 earnings season and rising confidence in AI-driven revenue opportunities,” market analysts said.
Technical analysts identified immediate support for the Nifty at 22,450, followed by 22,300, while resistance was seen near 22,600.
“Immediate support is placed at 22,450, followed by 22,300, while resistance is seen around 22,600. A sustained breakout above 22,600 could extend the recovery toward 22,800,” analysts noted.
Investors are now awaiting India’s consumer price inflation data, scheduled for release Monday, for additional signals about the Reserve Bank of India’s interest rate outlook.
Market participants will also closely monitor second-quarter corporate earnings to assess whether the current recovery can be sustained.
“Investors now await domestic CPI data on Monday for further cues on the interest-rate trajectory after the RBI’s shift to calibrated tightening. Going forward, actual performance of Q2 which is estimated to be good on a YoY basis will be critical in determining the sustainability of the market rebound,” market watchers said.
Meanwhile, the Indian rupee strengthened by approximately 20 paise to 96.73 against the U.S. dollar, supported by improving capital market flows and optimism surrounding possible diplomatic discussions between the United States and Iran following comments by President Donald Trump. (Source: IANS)
